Owing to weak demand, near-term pressures to remain for Mahindra CIE

Diversified products, buys should perk up its performance from CY21

Auto component maker Mahindra CIE was the worst-performing stock among the larger auto component companies in calendar year 2019 (CY19). The stock, which shed 34 per cent in CY19, has been underperforming its peers on the back of weak demand from automakers in its key markets of India and the European Union (EU), internal restructuring, and integration of acquired entities.

The near term could see some pressure, especially in the European business. While the passenger vehicle market, which has recovered somewhat, is a positive, the large decline in European commercial vehicle business is likely to continue, given the demand contraction.